Small Scottish Town Is Number One UK Hotspot 13/04/2005

A small Scottish town has become Britain's most impressive property hotspot over the last twelve months, according to the Halifax regional house price index.

Bellshill in Strathclyde, which is most famous for being the birthplace of Sheena Easton and footballer-turned-pundit Ally McCoist, has seen its house prices soar by an incredible 46% in the last year. Average house prices in Bellshill have increased from £72,508 to £105,698, rising at a rate of almost five times that of the UK average annual property inflation. Bellshill's Strathclyde neighbours Irvine and Coatbridge are close behind with average annual price rises of 45% and 42% respectively.

It was only last month when Scotland broke the £100,000 barrier for average house prices, the last region in the UK to do so. Scotland has experienced a price increase of 22.9% over the year, compared with an increase of just 1.1% in Greater London. Northern Ireland experienced the biggest annual inflation over the past year as a nation, with price rises of 25%.

Halifax's quarterly regional house price survey reveals that the top ten property hotpsots in the year to March were all outside of the south-east of England. Four are in Scotland, three in Wales and the rest in northern England. Saltburn-by-the-sea in Cleveland saw England's biggest price increase with a price increase of 43% from an average £87,176 to £124,392. The biggest increase in Wales was experienced by Ebbw Vale in Gwent where average prices jumped from £73,295 to £104,126 - an increase of 42%.

The increases in these areas have helped to shorten the gap between the north and south. The divide is now at its lowest since the first quarter of 1998.

Martin Ellis, chief economist at Halifax said: "It has been areas in Scotland, Wales, Northern Ireland and northern England that have recorded the most buoyant housing market conditions over the past year. As a result, the north-south divide has narrowed to its smallest for seven years. Despite some spectacular increases in house prices in some parts of the UK over the past 12 months, the market has slowed in most areas during the past six months or so. We expect this trend to continue over the coming months, with prices slowing most markedly outside southern England as the recent rapid rises in house prices and the increase in interest rates since late 2003 constrain demand."